Hair and beauty salon industry to issue receipts

27/03/2012 16:13

The Consumer Council of Fiji is calling on hair and beauty salon industry to issue receipts to consumers for all their services. Consumers demand transparency and accountability when paying for goods and services. A receipting system will bring about transparency and accountability from hair and beauty salons.

The Council has noted that majority of the hair and beauty salons are not issuing receipts to consumers after collecting payments for the service rendered. Sometimes the amount paid for a beauty or hair treatment is around $20-$200 and yet receipts are not issued. By not giving receipts results in two problems: First the hair and beauty salon covers track for any liability. How will the consumer prove that he or she visited the salon? Secondly, it’s a perfect way to conceal the income earned from the business to avoid paying tax.

Following a hair loss incident highlighted last week where a 21-year-old student ended up losing 80 percent of her hair after visiting a popular hair salon in Suva, the Council is keeping a close eye on the operation of this industry. The student in this case was not issued with a receipt to prove that she had visited that particular salon.

Non-issuance of receipt is a direct breach of regulation (7) of the Value Added Tax Regulations 1991 which states:

“Notwithstanding any other regulation, supplier shall not unless requested by the recipient be required to provide a tax invoice if the consideration in money for a supply does not exceed ten dollars or such amount as the Minister may from time to time, by Legal Notice declare.”

For goods/service above $10, it is mandatory for suppliers or service providers to issue receipts to its customers.

Consumers are urged to demand for a receipt if they pay for any service as this will assist them in getting redress if they are unhappy with the services provided by the retailer or service provider. Demanding for and keeping the receipts safely is a consumer responsibility.

The Council also calls on relevant authorities to regulate hair and beauty industry that will avoid consumers dumped with unknown and unsafe products.